Companies Can’t Advertise: Dividend Reinvestment Plans are not new. In fact, they have been in existence since the early 1960s. However, due to SEC rules and regulations, companies that offer DRIPs are restricted from advertising these programs to non-shareholders, unless, of course, the company goes through the cumbersome and costly process of filing with the SEC for permission to sell shares to non-shareholders.
Brokers Won’t Advertise: Stockbrokers rarely tell clients about DRIPs because the programs provide no compensation to the broker and, in fact, can threaten the broker’s business all together. DRIPs put YOU in control of your own financial future and the fees that you save by purchasing stock without a broker can be reinvested into YOUR portfolio and YOUR future – not your broker’s.
Back to DRiP Primer home page.